Clare estate owner awarded €7.9m damages against O'Brien-controlled TPH
The High Court has awarded €7.9m in damages to 18th Baron Inchiquin, and head of the O'Brien clan, against a company controlled by businessman Denis O'Brien over the repudiation of an agreement to buy lands at Dromoland estate in Co Clare.
Today at the Commercial Court, the big-business division of the High Court, Ms Justice Mary Finlay Geoghegan said she was satisfied to award damages to Conor Myles John O'Brien, a businessman and landowner of Thomond House, Dromoland against Trinity Property Holdings Ltd arising out of a proposal to buy some 377 acres out of the 600-acre estate.
TPH intended to establish and operate a five-star hotel, convention centre, golf course and club and five-star housing on the lands to be acquired.
The judge said that she was satisfied that there was a binding agreement, and that the contract was enforceable against the defendant company.
The court accepted that Baron Inchiquin was "ready willing and able" to go ahead with the proposed sale and was "entitled to damages in lieu of specific performance of the contact" following TPH's decision to go into liquidation.
He was entitled to damages consisting of the difference between the contract price agreed less the current value of the land. She said that she accepted a valuer's evidence that land in question 2006 was approximately some €11m, less the €100,000 deposit paid by TPH, and its current current value is approximately €3.2m.
The judge also accepted the plaintiff was entitled to special damages of more than €240,000 for loss of income and for costs including the restoration of the lands which the court heard has been effectively locked up since 2006.
The court heard that 65% of the shareholding of TPH is owned by enterpreneur Denis O'Brien. The proceedings were undefended. The company, the court previously heard, is now insolvent. On April 8, TPH's directors passed a resolution to have the company wound up and a creditors meeting is due to take place on April 20.
On Monday counsel for TPH sought to adjourn the case on the grounds that the company was to be wound up and would not be defending the case, which was expected to last for two weeks. The adjournment, which was opposed by counsel for Baron Inchiquin, was refused by the judge due to the late hour of the application.
The case arose from option agreements allegedly made on November 22, 2006 that TPH would buy lands at Dromoland estate for €9.59m, to be exercised by February 28, 2007. Subject to that option being exercised, a second option to buy other lands for €1.46m was granted.
TPH exercised the first option on February 28, 2007 and the second option on November 21, 2007 but failed to complete the purchase of either property. The defendant on December 3, 2008 then repudiated the option agreements on grounds of non-disclosure of information.
The lands in question on Dromoland estate are separate to Dromoland Castle which is on adjoining lands.
